On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years andafter four years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of thesecond year that this equipment will last only a total of three years. The salvage value is not changed.Compute the revised depreciation for both the second and third years.Book value at point of revisionRemaining depreciable costDepreciation per year for years 2 and 3es< Prev6 of 12Next >8:50 PM3/27/2022FnLockInsertPrt ScF9F10F11F12DelF8F4F6ロー+%&Backspace08. A building is acquired on January 1, at a cost of $830,000 with an estimated useful life of eight years and salvage value of $75,00.Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to thenearest dollar.)Depreciation for the PeriodEnd of PeriodBeginning ofPeriod Book ValueDepreciationRate (%)DepreciationExpenseAnnual PeriodAccumulatedBook ValueDepreciationFirst YearSecond YearThird Year< Prev7 of 12Next >8:50 PM3/27/2022FnLockInsertPrt ScF10F11F12DelF8F9F6F7F4Back

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On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years. Book value at point of revision Remaining depreciable cost Depreciation per year for years 2 and 3

On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years. Book value at point of revision Remaining depreciable cost Depreciation per year for years 2 and 3

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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